Mining Mirror July 2019 | Page 11

Global Global component of the Pilbara Blend, subject to market conditions, from the current average of about 35% to an estimated 38%. It is expected to deliver an internal rate of return of 20% and capital intensity of about USD60 per tonne of annual capacity, highly competitive for a new mine considering the additional infrastructure of rail spur, airport, camp and road access required. The operation is expected to be Rio Tinto’s lowest cost contributor to its industry benchmark Pilbara Blend product. According to J-S Jacques, Rio Tinto CEO, Koodaideri is a game-changer for Rio Tinto. “It will be the most technologically advanced mine we have ever built and sets a new benchmark for the industry in terms of the adoption of automation and the use of data to enhance safety and productivity,” he says. A USD44-million pre-feasibility study into Koodaideri Phase 2 has also been approved. The expansion could increase annual capacity from the Koodaideri production hub to 70 million tonnes and beyond. A final investment decision is subject to study outcomes and Rio Tinto’s value over volume approach. Technology at Koodaideri Koodaideri will feature technology already in use across Rio Tinto, such as autonomous trucks, trains and drills, and implement systems connecting all components of the mining value chain for the first time. The development will consolidate everything Rio Tinto has learned from its studies into finding advanced ways to extract minerals while reducing environmental impacts and improving safety, known as the Mine of the Future programme. Koodaideri has more than 70 innovations in scope including: a digital replica of the processing plant, accessible in real time by workers in the field; fully integrated mine automation and simulation systems; advanced automation including an automated workshop; and numerous data analytics capabilities and control loops to optimise production and reduce downtime. Koodaideri is about 35km north-west of Rio Tinto’s Yandicoogina mine site, and approximately 110km from the town of Newman in the Pilbara region of Western Australia. Source: Rio Tinto. www.miningmirror.co.za JULY 2019 MINING MIRROR [9] JULY 2019 MINING MIRROR [9]